| Summary: | 碩士 === 國立高雄第一科技大學 === 財務管理所 === 94 === ABSTRACT
This study investigates the long run abnormal returns of capital reduction and stock
repurchase firms who exercised within the period of Aug, 2000 to Jun, 2005. Adopting
the methodology used by Ikenberry et al. (1995); equal and valued weighted indexes,
size-based, and size-book-to-market-based benchmarks were employed to measure the
long run abnormal returns for these two kinds of firms.
The results show the abnormal returns of 25.24% and 5.89% for stock repurchase
and capital reduction firms while we trace the performance for three years. These
cumulative abnormal returns are indifferent from zero significantly under the 10% level.
We go further to identify whether capital reduction firms experience structural change in
operation. Only the quick ratio shows in our investigation. Contrarily, the quick ratio,
free cash flow return, operating profit ratio, and debt-to-equity ratio experience
structural change significantly in the case of stock repurchase firms. We interpret the
abnormal returns for these two capital reduction firms can be explained by size and
book-to-market effects.
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